Global food prices slip in 2024 as sugar and cereals slide

Global food prices slumped slightly, despite the cost of meat and vegetable oils rising in 2024
World food prices were down in 2024 overall, but some commodity prices made a come back (Image: Getty Images)

World food prices slid overall in 2024 compared to the previous year, Food and Agriculture Organisation of the United Nations (FAO) data analysis shows.

The international price for a basket of commodities fell 13.3% for cereals and 13.2% on sugar in last year compared to 2023.

World food prices fell 2.1% for the last 12 months as a result, FAO data shows.

Prices also fell month on month and year on year for December, “led by a drop in international sugar quotations”, the FAO said.

Relaxing cereal prices was the result of decreasing international pressures along with “higher seasonal availability from harvests in Argentina and Australia”.

Stronger crops in the likes of Australia balanced pressure from regions and countries struggling with harvests through adverse weather or war.

Why did global sugar prices decline?

Cheapening sugar prices were driven by “stronger-than-expected” harvests in Brazil in the second half of November, supported by the weakening of the Brazilian real against the US dollar.

“In addition, improving prospects for the sugarcane crops to be harvested from April 2025 in Brazil and the ongoing crushing season in India and Thailand, where mills are fully operational, also contributed to the decline in world sugar prices,” said the FAO.

An overall price reduction was despite an average increase across dairy, meat and vegetable oils, which hadn’t been “insignificant”, said the FAO.

Tightening global supplies led to the general rise in oil prices, despite drops during parts of 2024 for the likes of soy, rapeseed and sunflower.

“The FAO Vegetable Oil Price Index averaged 163.3 points in December, down 0.9 points (0.5 percent) month-on-month but still 33.5 percent higher than its year-earlier level,“ said the FAO.

Tightening global vegetable oil supplies throughout 2024 led to the overall rise in vegetable oil prices for the period.

Overall meat prices rose in 2024

Despite three months of consecutive declines last year, overall meat prices rose 3.1% for the year, due to stronger sales in the backend of the year.

The rise was driven by higher beef prices, triggered by stronger global demand and also supply constraints due to the likes of processing plant closures in major exporting countries, according to the FAO.

There was also a resurgence in red meat sales in countries like the UK, following periods of decline or stagnation at best.

“By contrast, pig meat prices declined, underpinned by weaker-than-expected consumer demand in the European Union ahead of the winter holidays,” the FAO said.

Poultry prices, however, dipped due to higher availability from export suppliers like Brazil.

Dairy prices rose 5.8% for the year, attributed to a surge in butter prices which was driven by higher global demand and struggling exportable supplies.